So, How Do The Different Types Of Physician Mortgage Loans Compare?
If you are a physician, or qualifying medical physician, and looking to buy a property, then a physician mortgage loan is a perfect choice for you. It comes with added benefits that only a health professional of your standing can take advantage of. In addition to doctors, dentists and podiatrists can also take advantage of these types of schemes. This article will explore the true definition of a physician mortgage loan, look at its benefits, and go on to compare physician mortgage loans.
What is a Physician Mortgage Loan?
A physician mortgage loan is a mortgage that is only available to qualifying or qualified doctors. It is a specialist kind of mortgage available to medical professionals. It is something that you may not have considered or known about before, but a financial arrangement that is worth considering when ready to take the next step and enter the property market. These loans are, as with the conventional ones, open to first and secondary buyers. The only restriction is that you can only have one mortgage physician loan at a time. That would be to take too much advantage of their benefits.
An article on Why Real Estate and Medicine Mix explains more about physician mortgage loans and their benefits for physicians looking to invest in property.
How do Physician Loans work and what are their benefits?
Physician mortgage loans work in that they do not require private mortgage insurance (PMI) to be purchased and require a small or no down payment to set-up. They have the potential to save the borrower large sums of money off monthly mortgage repayments. As you will not be including your student loan in the DTI, you will find that you easily qualify to purchase the home that you thought seemed a distant dream.
Comparing Physician Mortgage Loans
Using the information online, it is possible to compare physician mortgage loans and rates. You will need to consider the interest rate and see how it compares alongside a conventional mortgage loan. It is wise to be clear on the fees that are associated with the transaction before signing the contract. Further consideration will be the down payment that is required from you. The value of the property that you can purchase. This down payment level will vary between lenders, although the advantage of the physician mortgage loan is the fact that this will be low or zero. Finally, timelines will be important if you are due to start a new job in a new area. It should be noted that some of the lenders out there insist that your employment contract states that you are starting within 30 days. Conversely, other lenders will give you many months to become settled in your new job. This provides a nice comfort blanket and takes away the stress of moving and the financial considerations involved.
With physician mortgage loans limited in availability, it is important to find a provider who understands your needs and is competitive. You want to avoid being charged a higher rate simply because of the bespoke nature of the product on offer. Although, having said that, the benefits on offer are some that are not available to the conventional mortgage seeker.
So, now you know what a physician mortgage loan is, how it works, and how the different types of mortgage physician loans can compare, all that remains is for you to take that next step and hit the property ladder running. The first rung on a ladder that is made all the lower because of companies such as LeverageRX, who can take care of your specific mortgage needs.